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Compulsory Purchase & "Rapid
  Growth" in China and Japan

The effects of imposed rapid growth on daily life,
            and how citizens respond.
Outline
 •What is Compulsory Purchase?

       •The case of China

      •The case of Japan

•Comparison and questions raised

         •conclusions?

           •discuss!
Compulsory Purchase and
 Rapid Growth in China
Souce: http://house.ifeng.com/news/special/chaiqian/
Urbanization Rate
Urbanizaiton: Rural vs Urban
        Population
Urbanization: Provinces and arears
China’s eastern regions account for the highest rates of urbanization. Some
provinces and municipalities, such as Guandong, Shanghai, Beijing have
urbanizaiton rates between 63 and 89 per cent
Urbanization vs Agricultural Land




Souce: Http://bbs.english.sina.com/viewthread.php?tid=833608&extra=page%3D1
The Land Tenure System in China (Chan
               2003)
●   The Land Tenure System:
●   Since 1966, basically all land has belonged to the
    people, represented by the government.
●   Private land ownership does not exit in China
●   The State owns all urban land, while farmer collectives
    own all rural land
●   Land users may use the land and own the buildings and
    improvements on it, but the sovereignty of the land
    remains in the hands of the State or farmer
    conllectives
●   Compulsory land acquisition
Compensation Principals – Problems
                             (Chan 2003)

●   Compensation:
    1.    Compensation for the Acquisition of Farmland: (Based on
          productivity)
    2.    Compensation for the Acquisition of Urban Properties: (based
          on assessment of real estate)


●   Problems:
    ●    Just Terms Compensation Principle not in Place
    ●    Limited Consequential loss compensation
    ●    Interest in land undefined
    ●    Right to claim compensation not available
    ●    Problems with market value assessment
    ●    Non-uniform compensation standard and lack of transparent
Land Acquistion Compensation in
       China - Problems




               ●   http://news.house365.
                   com/gbk/whestate/system/2011/05/24/020035188.html
               ●   http://news.cnwest.com/content/2007-03/22/content_465389.htm
Land Acquistion Compensation in
       China - Problems




                     http://house.focus.cn/news/2007-03-22/293727.html
                     http://house.focus.cn/news/2007-03-22/293728.html
                     http://house.focus.cn/news/2007-03-22/293737.html
Another side of the Story: Land
   Acquisiton and New Life




                  Souce: http://news.cnwest.com/content/2007-03/22/content_465389.htm
Case Studies – Shanghai:
●   How do urbanization affects rural lives in
    China
●   What is the story about urbanization in the
    rural/subaurban areas of Shanghai?
References
●   Chan, N. (2003) Land acquisition
    compensation in China - Problems & answers.
    International Real Estate Review 6(1): 136-152
●   Xu, Y., Tang, B-s. and Chan, E.H.W. (2011)
    State-led land requisition and transformation
    of rural villages in transitional China. Habitat
    International 35: 57-65
A typical village area in Shanghai




             What it changes to….?



   Picture from: http://bbs.sf-express.com/forum/forum.php?mod=viewthread&tid=317083&page=1
PHYSICAL CHANGE
Urban resettlement housing districts




                                                                    Semi-urbanized village

Pictures from: http://tieba.baidu.com/p/1262763326?fr=image_tieba
http://photo.eastday.com/2011gqhd/20111214_7/
SOCIAL CHANGE

■ Hukou: from agricultural to non-agricultural
■ The compensation: social security expense

  chengbao


                                                                                           zhenbao




             Picture from: http://gov.eastday.com/shmj2011/node558/node559/u1a17499.html
ECONOMIC CHANGE

■ Occupation: from farmer to no-agricultural job
■ Urban facilities: like supermarket, restaurant,
  …..




Picture from: http://www.xplus.com/papers/nykjb/20111222/n32.shtml
http://www.qdcaijing.com/node/news_qd/2010-12-5/101258591810171413.html
CULTURAL CHANGE
●   Retaining most of their rural traditions




Pictures from: http://yz.cnnb.com.cn/system/2010/10/18/010023323.shtml
http://dhnews.zjol.com.cn/dhnews/system/2010/03/22/011949290.shtml
PROBLEMS
■ Self-identification: rural or urban?
■ Dingzihu




Pictures from: http://space.yoka.com/blog/2654509/5460061.html
http://space.yoka.com/blog/2654509/5460061.html
References
●   Xu, Y., Tang, B-s. and Chan, E.H.W. (2011) State-led land
    requisition and transformation of rural villages in transitional
    China. Habitat International 35: 57-65
Nick Kaufmann


        Compulsory Purchase in Japan
        Weak Compulsory Purchase / Eminent Domain Laws in Japan

 "In the United States, governments faced with insurmountable coordination problems and transaction
 costs might cut through them by exercising the power of eminent domain. Although Article 29 of the
       Japanese Constitution authorizes the government to take private property in return for just
compensation, the ability of the government to exercise that power is severely limited compared to the
  United States, both legally and normatively. It is limited legally because civil courts in Japan lack
 the contempt power so they lack a means of enforcing their rulings. Therefore, unlike in the United
       States, in Japan courts cannot send armed agents of the state to enforce an eviction order.


More importantly, normatively, there is deep opposition to the exercise of the eminent
domain power in Japan -- much deeper than in the U.S."




Source: Mark A. Edwards, "impediments to rebuilding in Japan" PropertyProf Blog http://lawprofessors.
typepad.com/property/2011/04/property-law-impediments-to-rebuilding-in-japan.html
Compulsory Purchase in Japan
"During the land acquisition, Mori Building (Roppongi Hills developer) had to offer unusually high
inducements to existing land owners and in some cases offered replacement dwellings in the Roppongi
Hills Residences, sacrificing the ability of the donated dwelling to generate any rental income at all."


"This is not to say that investing in Japan is all doom and gloom, in fact quite the opposite, at least in
Tokyo anyway. Net yields of between 6-7% are not unheard of and real estate investments are often
very fruitful ventures."


Comments:

"During the bubble many developers bypassed the law and used the yakuza to move people out. This
was common enough for the word jiage to come into common usage to describe such people. Was it
somewhere in the Roppongi are that one such person "accidentally" reversed a truck into an old persons
house? Admittedly, that was a rare cases, but threatening visits to old people by burly people wearing
sunglasses were not so uncommon." -gaijintraveller OCT. 20, 2010 - 09:09AM JST


SOURCE: "Eminent Domain laws in Japan notoriously weak" http://www.japantoday.
com/category/commentary/view/eminent-domain-laws-in-japan-notoriously-weak
Narita Airport




source: http://www.deconcrete.org/2010/12/23/interrupted-dreams/
Chris Marker, Sans Soleil, 1983

Opening postponed 7 years due to protests
              (1971-1978)
 "After years of protests by the public
 against the construction of Tokyo Narita
 Airport, it was ready to open on 26
 March 1978 when a group armed with
 Molotov cocktails drove into the airport
 in a burning car, broke into the control
 tower and destroyed much of its
 equipment, causing approx. $500,000 in
 damages and delaying the opening by
 another two months".

 http://criminalwisdom.
 com/post/15038833193/protest-against-the-
 construction-of-narita


 Photo (1978) by Sadayuki Mikami.
Since 21 May 1978...
                 821,593,666 Passengers (790,329,987 on international flights)
    23,132,319 t of Cargo (16,964,972 t exported)                  146,406,815 kl of Fuel supplied




   photo: http://unofficialnetworks.com/traveling-japan-hakuba-71893/narita/
   stats source: Narita International Airport Corporation http://www.naa.
   jp/en/traffic/pdf/statistics2012.pdf
References & Further Reading
Criminal Wisdom. "Protest against the construction of Narita Airport."2011. http://criminalwisdom.
com/post/15038833193/protest-against-the-construction-of-narita
Narita International Airport Corporation. 2012 Statistics. http://www.naa.jp/en/traffic/pdf/statistics2012.
pdf
German, Adam. "Eminent Domain laws in Japan notoriously weak" Japan Today. http://www.
japantoday.com/category/commentary/view/eminent-domain-laws-in-japan-notoriously-weak
Mark A. Edwards. "impediments to rebuilding in Japan" PropertyProf Blog http://lawprofessors.
typepad.com/property/2011/04/property-law-impediments-to-rebuilding-in-japan.html

Recommended:
Sorensen, Andre. "post war reconstruction and rapid economic growth" in "The Making of Urban
Japan" Nissan Institute / Routledge Japanese Studies Series. 2003
Ogawa, Shinsuke. "Summer in Narita" NIHON KAIHO SENSEN: SANRIZUKA NO NATSU
 http://mubi.com/films/summer-in-narita
Journeyman pictures. "Narita Airport" Youtube http://www.youtube.com/watch?v=HPcG3vp7DJM
Compulsory Purchase:
                       China vs. Japan
    -Compulsory Purchase and Property Rights
        state ownership vs. individual ownership, contempt-powers vs. no contempt powers

                                   -Public Interest
How to define? Utilitarian? How many people are housed? How many people are given new transport
                options? Which segments of society benefit, which are sacrificed?

                                            -Justice
 Even if the goal is in public interest, is it reached justly or unjustly? criteria: public participation,
                                              egalitarian, etc.

                                           -Changes
    How do the forms of 'daily life' (Seikatsu, ?) change when change happens under compulsory
          purchase. Abrupt vs. Gradual changes, change happening TO you not BY you.

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Cities & social change in east asia compulsory purchase land rec. presentation (2)

  • 1. Compulsory Purchase & "Rapid Growth" in China and Japan The effects of imposed rapid growth on daily life, and how citizens respond.
  • 2. Outline •What is Compulsory Purchase? •The case of China •The case of Japan •Comparison and questions raised •conclusions? •discuss!
  • 3. Compulsory Purchase and Rapid Growth in China
  • 6. Urbanizaiton: Rural vs Urban Population
  • 7. Urbanization: Provinces and arears China’s eastern regions account for the highest rates of urbanization. Some provinces and municipalities, such as Guandong, Shanghai, Beijing have urbanizaiton rates between 63 and 89 per cent
  • 8. Urbanization vs Agricultural Land Souce: Http://bbs.english.sina.com/viewthread.php?tid=833608&extra=page%3D1
  • 9. The Land Tenure System in China (Chan 2003) ● The Land Tenure System: ● Since 1966, basically all land has belonged to the people, represented by the government. ● Private land ownership does not exit in China ● The State owns all urban land, while farmer collectives own all rural land ● Land users may use the land and own the buildings and improvements on it, but the sovereignty of the land remains in the hands of the State or farmer conllectives ● Compulsory land acquisition
  • 10. Compensation Principals – Problems (Chan 2003) ● Compensation: 1. Compensation for the Acquisition of Farmland: (Based on productivity) 2. Compensation for the Acquisition of Urban Properties: (based on assessment of real estate) ● Problems: ● Just Terms Compensation Principle not in Place ● Limited Consequential loss compensation ● Interest in land undefined ● Right to claim compensation not available ● Problems with market value assessment ● Non-uniform compensation standard and lack of transparent
  • 11. Land Acquistion Compensation in China - Problems ● http://news.house365. com/gbk/whestate/system/2011/05/24/020035188.html ● http://news.cnwest.com/content/2007-03/22/content_465389.htm
  • 12. Land Acquistion Compensation in China - Problems http://house.focus.cn/news/2007-03-22/293727.html http://house.focus.cn/news/2007-03-22/293728.html http://house.focus.cn/news/2007-03-22/293737.html
  • 13. Another side of the Story: Land Acquisiton and New Life Souce: http://news.cnwest.com/content/2007-03/22/content_465389.htm
  • 14. Case Studies – Shanghai: ● How do urbanization affects rural lives in China ● What is the story about urbanization in the rural/subaurban areas of Shanghai?
  • 15. References ● Chan, N. (2003) Land acquisition compensation in China - Problems & answers. International Real Estate Review 6(1): 136-152 ● Xu, Y., Tang, B-s. and Chan, E.H.W. (2011) State-led land requisition and transformation of rural villages in transitional China. Habitat International 35: 57-65
  • 16. A typical village area in Shanghai What it changes to….? Picture from: http://bbs.sf-express.com/forum/forum.php?mod=viewthread&tid=317083&page=1
  • 17. PHYSICAL CHANGE Urban resettlement housing districts Semi-urbanized village Pictures from: http://tieba.baidu.com/p/1262763326?fr=image_tieba http://photo.eastday.com/2011gqhd/20111214_7/
  • 18. SOCIAL CHANGE ■ Hukou: from agricultural to non-agricultural ■ The compensation: social security expense chengbao zhenbao Picture from: http://gov.eastday.com/shmj2011/node558/node559/u1a17499.html
  • 19. ECONOMIC CHANGE ■ Occupation: from farmer to no-agricultural job ■ Urban facilities: like supermarket, restaurant, ….. Picture from: http://www.xplus.com/papers/nykjb/20111222/n32.shtml http://www.qdcaijing.com/node/news_qd/2010-12-5/101258591810171413.html
  • 20. CULTURAL CHANGE ● Retaining most of their rural traditions Pictures from: http://yz.cnnb.com.cn/system/2010/10/18/010023323.shtml http://dhnews.zjol.com.cn/dhnews/system/2010/03/22/011949290.shtml
  • 21. PROBLEMS ■ Self-identification: rural or urban? ■ Dingzihu Pictures from: http://space.yoka.com/blog/2654509/5460061.html http://space.yoka.com/blog/2654509/5460061.html
  • 22. References ● Xu, Y., Tang, B-s. and Chan, E.H.W. (2011) State-led land requisition and transformation of rural villages in transitional China. Habitat International 35: 57-65
  • 23. Nick Kaufmann Compulsory Purchase in Japan Weak Compulsory Purchase / Eminent Domain Laws in Japan "In the United States, governments faced with insurmountable coordination problems and transaction costs might cut through them by exercising the power of eminent domain. Although Article 29 of the Japanese Constitution authorizes the government to take private property in return for just compensation, the ability of the government to exercise that power is severely limited compared to the United States, both legally and normatively. It is limited legally because civil courts in Japan lack the contempt power so they lack a means of enforcing their rulings. Therefore, unlike in the United States, in Japan courts cannot send armed agents of the state to enforce an eviction order. More importantly, normatively, there is deep opposition to the exercise of the eminent domain power in Japan -- much deeper than in the U.S." Source: Mark A. Edwards, "impediments to rebuilding in Japan" PropertyProf Blog http://lawprofessors. typepad.com/property/2011/04/property-law-impediments-to-rebuilding-in-japan.html
  • 24. Compulsory Purchase in Japan "During the land acquisition, Mori Building (Roppongi Hills developer) had to offer unusually high inducements to existing land owners and in some cases offered replacement dwellings in the Roppongi Hills Residences, sacrificing the ability of the donated dwelling to generate any rental income at all." "This is not to say that investing in Japan is all doom and gloom, in fact quite the opposite, at least in Tokyo anyway. Net yields of between 6-7% are not unheard of and real estate investments are often very fruitful ventures." Comments: "During the bubble many developers bypassed the law and used the yakuza to move people out. This was common enough for the word jiage to come into common usage to describe such people. Was it somewhere in the Roppongi are that one such person "accidentally" reversed a truck into an old persons house? Admittedly, that was a rare cases, but threatening visits to old people by burly people wearing sunglasses were not so uncommon." -gaijintraveller OCT. 20, 2010 - 09:09AM JST SOURCE: "Eminent Domain laws in Japan notoriously weak" http://www.japantoday. com/category/commentary/view/eminent-domain-laws-in-japan-notoriously-weak
  • 26. Chris Marker, Sans Soleil, 1983 Opening postponed 7 years due to protests (1971-1978) "After years of protests by the public against the construction of Tokyo Narita Airport, it was ready to open on 26 March 1978 when a group armed with Molotov cocktails drove into the airport in a burning car, broke into the control tower and destroyed much of its equipment, causing approx. $500,000 in damages and delaying the opening by another two months". http://criminalwisdom. com/post/15038833193/protest-against-the- construction-of-narita Photo (1978) by Sadayuki Mikami.
  • 27. Since 21 May 1978... 821,593,666 Passengers (790,329,987 on international flights) 23,132,319 t of Cargo (16,964,972 t exported) 146,406,815 kl of Fuel supplied photo: http://unofficialnetworks.com/traveling-japan-hakuba-71893/narita/ stats source: Narita International Airport Corporation http://www.naa. jp/en/traffic/pdf/statistics2012.pdf
  • 28. References & Further Reading Criminal Wisdom. "Protest against the construction of Narita Airport."2011. http://criminalwisdom. com/post/15038833193/protest-against-the-construction-of-narita Narita International Airport Corporation. 2012 Statistics. http://www.naa.jp/en/traffic/pdf/statistics2012. pdf German, Adam. "Eminent Domain laws in Japan notoriously weak" Japan Today. http://www. japantoday.com/category/commentary/view/eminent-domain-laws-in-japan-notoriously-weak Mark A. Edwards. "impediments to rebuilding in Japan" PropertyProf Blog http://lawprofessors. typepad.com/property/2011/04/property-law-impediments-to-rebuilding-in-japan.html Recommended: Sorensen, Andre. "post war reconstruction and rapid economic growth" in "The Making of Urban Japan" Nissan Institute / Routledge Japanese Studies Series. 2003 Ogawa, Shinsuke. "Summer in Narita" NIHON KAIHO SENSEN: SANRIZUKA NO NATSU http://mubi.com/films/summer-in-narita Journeyman pictures. "Narita Airport" Youtube http://www.youtube.com/watch?v=HPcG3vp7DJM
  • 29. Compulsory Purchase: China vs. Japan -Compulsory Purchase and Property Rights state ownership vs. individual ownership, contempt-powers vs. no contempt powers -Public Interest How to define? Utilitarian? How many people are housed? How many people are given new transport options? Which segments of society benefit, which are sacrificed? -Justice Even if the goal is in public interest, is it reached justly or unjustly? criteria: public participation, egalitarian, etc. -Changes How do the forms of 'daily life' (Seikatsu, ?) change when change happens under compulsory purchase. Abrupt vs. Gradual changes, change happening TO you not BY you.